Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefit Plans

Defined Benefit Plans

The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. Employees in the U.S., Puerto Rico and certain international locations are also provided retirement benefits through defined contribution plans.

The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees.

Accounting for Defined Benefit Pension and Other Postretirement Plans

The Company recognizes on its balance sheet an asset or liability equal to the over- or under-funded benefit obligation of each defined benefit pension and other postretirement plan. Actuarial gains or losses and prior service costs or credits that arise during the period are not recognized as components of net periodic benefit cost, but are recognized, net of tax, as a component of other comprehensive (loss) earnings.

Included in accumulated other comprehensive loss as of December 31, 2023 and 2022 are:

	Pension Benefits				Other Postretirement Benefits
	December 31,				December 31,
(In millions)	2023		2022		2023		2022
Unrecognized actuarial net gain	$	(268.1)	$	(293.6)	$	(43.4)	$	(22.0)
Unrecognized prior service cost (credit)	19.7		4.0		(3.0)		(3.7)
Total	$	(248.4)	$	(289.6)	$	(46.4)	$	(25.7)

The unrecognized net actuarial gains exceeded 10% of the higher of the market value of plan assets or the projected benefit obligation at the beginning of the year for certain of the plans, therefore, amortization of such excess has been included in net periodic benefit costs for pension and other postretirement benefits in each of the last three years. The amortization period is the average remaining service period that active employees are expected to receive benefits, unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Unrecognized prior service cost (credit) is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits. If all or almost all of a plan's participants are inactive, unrecognized prior service cost is amortized over the remaining life expectancy of those participants.

The change in accumulated other comprehensive loss in 2023 relating to pension benefits and other postretirement benefits consists of:

(In millions)	Pension Benefits		Other Postretirement Benefits
Unrecognized actuarial loss (gain)	$	8.3	$	(22.8)
Amortization of actuarial gain	20.5		1.4
Unrecognized prior service cost	16.3		—
Amortization of prior service (credit) cost	(1.0)		0.7
Impact of foreign currency translation	(2.9)		—
Net change	$	41.2	$	(20.7)

Components of net periodic benefit cost, change in projected benefit obligation, change in plan assets, funded status, fair value of plan assets, assumptions used to determine net periodic benefit cost, funding policy and estimated future benefit payments are summarized below for the Company’s pension plans and other postretirement plans.

Net Periodic Benefit Cost

Components of net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 were as follows:

	Pension Benefits						Other Postretirement Benefits
	December 31,						December 31,
(In millions)	2023		2022		2021		2023		2022		2021
Service cost	$	26.6	$	32.6	$	38.6	$	2.1	$	3.4	$	3.4
Interest cost	63.6		36.8		31.6		6.9		3.7		2.6
Expected return on plan assets	(62.6)		(64.6)		(66.1)		—		—		—
Plan curtailment, settlement and termination	(3.8)		2.3		(16.5)		—		(3.9)		—
Amortization of prior service cost (credit)	2.1		0.9		0.9		(0.7)		(0.6)		—
Recognized net actuarial (gains) losses	(18.3)		(0.2)		1.3		(1.4)		0.3		0.2
Net periodic benefit cost	$	7.6	$	7.8	$	(10.2)	$	6.9	$	2.9	$	6.2

During the year ended December 31, 2021, the Company recognized a settlement gain as a result of cash payments from lump sum elections related to the U.S. and Puerto Rico pension plans.

Change in Projected Benefit Obligation, Change in Plan Assets and Funded Status

The table below presents components of the change in projected benefit obligation, change in plan assets and funded status at December 31, 2023 and 2022.

	Pension Benefits				Other Postretirement Benefits
(In millions)	2023		2022		2023		2022
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	1,379.0	$	1,946.6	$	137.5	$	188.4
Service cost	26.6		32.6		2.1		3.4
Interest cost	63.6		36.8		6.9		3.7
Participant contributions	0.5		3.3		4.1		4.5
(Divestitures) acquisitions	(8.8)		2.8		—		—
Plan settlements and terminations	8.6		(82.0)		—		(4.5)
Actuarial losses (gains)	40.8		(439.4)		(22.8)		(43.3)
Benefits paid	(74.0)		(54.1)		(15.2)		(14.7)
Impact of foreign currency translation	7.3		(67.6)		—		—
Projected benefit obligation, end of year	$	1,443.6	$	1,379.0	$	112.6	$	137.5
Change in Plan Assets
Fair value of plan assets, beginning of year	$	1,067.1	$	1,366.4	$	—	$	—
Actual return on plan assets	95.2		(138.1)		—		—
Company contributions	41.7		25.6		11.1		10.2
Participant contributions	0.5		3.3		4.1		4.5
Divestitures	(12.1)		—		—		—
Plan settlements	(7.1)		(85.9)		—		—
Benefits paid	(74.0)		(54.1)		(15.2)		(14.7)
Impact of foreign currency translation	(1.9)		(50.1)		—		—
Fair value of plan assets, end of year	1,109.4		1,067.1		—		—
Funded status of plans	$	(334.2)	$	(311.9)	$	(112.6)	$	(137.5)

Net accrued benefit costs for pension plans and other postretirement benefits are reported in the following components of the Company’s consolidated balance sheets at December 31, 2023 and 2022:

	Pension Benefits				Other Postretirement Benefits
	December 31,				December 31,
(In millions)	2023		2022		2023		2022
Noncurrent assets	$	89.3	$	118.3	$	—	$	—
Current liabilities	(20.0)		(14.6)		(13.8)		(15.4)
Noncurrent liabilities	(403.5)		(415.6)		(98.8)		(122.1)
Net accrued benefit costs	$	(334.2)	$	(311.9)	$	(112.6)	$	(137.5)

The projected benefit obligation is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases. The accumulated benefit obligation for the Company’s pension plans was $1.36 billion and $1.31 billion at December 31, 2023 and 2022, respectively.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of the fair value of plan assets at December 31, 2023 and 2022 were as follows:

	December 31,
(In millions)	2023		2022
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	1,058.1	$	1,026.5
Accumulated benefit obligation	1,023.5		999.3
Fair value of plan assets	642.4		604.9

Fair Value of Plan Assets

The Company measures the fair value of plan assets based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy described in Note 9 Financial Instruments and Risk Management. The table below presents total plan assets by investment category as of December 31, 2023 and 2022 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value:

	December 31, 2023
(In millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	17.4	$	—	$	—	$	17.4
Equity securities	401.6		30.3		—		431.9
Fixed income securities	175.9		281.6		—		457.5
Assets held by insurance companies and other	181.4		17.2		4.0		202.6
Total	$	776.3	$	329.1	$	4.0	$	1,109.4

	December 31, 2022
(In millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	34.2	$	0.9	$	—	$	35.1
Equity securities	42.9		353.4		—		396.3
Fixed income securities	181.6		271.5		—		453.1
Assets held by insurance companies and other	76.9		97.9		7.8		182.6
Total	$	335.6	$	723.7	$	7.8	$	1,067.1

Risk tolerance on invested pension plan assets is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. Investment risk is measured and monitored on an ongoing basis through annual liability measures, periodic asset/liability studies and investment portfolio reviews. The Company’s investment strategy is to maintain, where possible, a diversified investment portfolio across several asset classes that, when combined with the Company’s contributions to the plans, will ensure that required benefit obligations are met.

Assumptions

The following weighted average assumptions were used to determine the benefit obligations for the Company’s defined benefit pension and other postretirement plans as of December 31, 2023 and 2022:

	Pension Benefits				Other Postretirement Benefits
	2023		2022		2023		2022
Discount rate	4.5	%	4.8	%	5.0	%	5.4	%
Expected return on plan assets	6.1	%	5.0	%	—	%	—	%
Rate of compensation increase	3.7	%	3.7	%	—	%	—	%

The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2023:

	Pension Benefits						Other Postretirement Benefits
	2023		2022		2021		2023		2022		2021
Discount rate	4.8	%	2.3	%	1.9	%	5.4	%	2.5	%	1.9	%
Expected return on plan assets	6.1	%	5.0	%	5.1	%	—	%	—	%	—	%
Rate of compensation increase	3.7	%	3.1	%	2.9	%	—	%	—	%	—	%

The assumptions for each plan are reviewed on an annual basis. The discount rate reflects the current rate at which the pension and other benefit liabilities could be effectively settled at the measurement date. In setting the discount rates, we utilize comparable corporate bond indices as an indication of interest rate movements and levels. Corporate bond indices were selected based on individual plan census data and duration. The expected return on plan assets was determined using historical market returns and long-term historical relationships between equities and fixed income securities. The Company compares the expected return on plan assets assumption to actual historic returns to ensure reasonableness. Current market factors such as inflation and interest rates are also evaluated.

The weighted-average healthcare cost trend rate used for 2023 was 6.9% declining to a projected 4.0% in the year 2046. For 2024, the assumed weighted-average healthcare cost trend rate used will be 8.6% declining to a projected 4.0% in the year 2048. In selecting rates for current and long-term healthcare cost assumptions, the Company takes into consideration a number of factors including the Company’s actual healthcare cost increases, the design of the Company’s benefit programs, the demographics of the Company’s active and retiree populations and external expectations of future medical cost inflation rates.

Estimated Future Benefit Payments

The Company’s funding policy for its funded pension plans is based upon local statutory requirements. The Company’s funding policy is subject to certain statutory regulations with respect to annual minimum and maximum company contributions. Plan benefits for the non-qualified plans are paid as they come due.

Estimated benefit payments over the next ten years for the Company’s pension plans and retiree health plan are as follows:

(In millions)	Pension Benefits		Other Postretirement Benefits
2024	$	100.6	$	13.8
2025	99.1		13.8
2026	97.5		13.7
2027	105.2		13.1
2028	100.8		12.4
Thereafter	521.4		50.5
Total	$	1,024.6	$	117.3

Defined Contribution Plans

The Company sponsors defined contribution plans covering its employees in the U.S. and Puerto Rico, as well as certain employees in a number of countries outside the U.S. The Company’s domestic defined contribution plans consist primarily of a Profit Sharing 401(k) Plan and other 401(k) retirement plans. Profit sharing contributions are made at the discretion of the Company. The Company’s non-domestic plans vary in form depending on local legal requirements. The Company’s contributions are based upon employee contributions, service hours, or pre-determined amounts depending upon the plan. Obligations for contributions to defined contribution plans are recognized as expense in the consolidated statements of operations when they are earned.

The Company maintains a 401(k) Restoration Plan, which permits employees who earn compensation in excess of the limits imposed by Section 401(a)(17) of the Code to (i) defer a portion of base salary and bonus compensation, (ii) be credited with a Company matching contribution in respect of deferrals under the 401(k) Restoration Plan, and (iii) be credited with Company non-elective contributions (to the extent so made by the Company), in each case, to the extent that participants otherwise would be able to defer or be credited with such amounts, as applicable, under the Profit Sharing 401(k) Plan if not for the limits on contributions and deferrals imposed by the Code.

The Company maintains an Income Deferral Plan, which permits certain management or highly compensated employees who are designated by the plan administrator to participate in the Income Deferral Plan to elect to defer up to 50% of base salary and up to 100% of bonus compensation, in each case, in addition to any amounts that may be deferred by such participants under the Profit Sharing 401(k) Plan and the 401(k) Restoration Plan. In addition, under the Income Deferral Plan, eligible participants may be granted employee deferral awards, which awards will be subject to the terms and conditions (including vesting) as determined by the plan administrator at the time such awards are granted.

Total employer contributions to defined contribution plans were approximately $129.3 million, $111.5 million and $107.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.